Kandy Harts manufactures custom T-shirts.Each T-shirt can be imprinted front and back with photos,company logos or other information.Each T-shirt requires 2 ounces of ink,15 minutes of direct labor processing,folding,packaging,and a plastic bag for packaging.The following information is available regarding costs:
Kandy applied overhead at a rate of $9.40 per direct labor hour,and fringe benefits for workers are an additional 20% of wages.What is the standard price and standard quantity for direct labor?
A) $16.00; 0.25 hour
B) $19.20; 0.25 hour
C) $4.80; 1 hour
D) $4.80; 0.25 hour

Question

Kandy Harts manufactures custom T-shirts.Each T-shirt can be imprinted front and back with photos,company logos or other information.Each T-shirt requires 2 ounces of ink,15 minutes of direct labor processing,folding,packaging,and a plastic bag for packaging.The following information is available regarding costs:
  Kandy applied overhead at a rate of $9.40 per direct labor hour,and fringe benefits for workers are an additional 20% of wages.What is the standard price and standard quantity for direct labor? 
A) $16.00; 0.25 hour 
B) $19.20; 0.25 hour 
C) $4.80; 1 hour 
D) $4.80; 0.25 hour

Quizplus · Accepted Answer

$16.00 x 120% = $19.20; 0.25 hr x 60 minutes = 15 minutes

Kandy Harts Manufactures Custom T-Shirts